Following the fall on 10 and 11 October, Tether and USD Coin carried out a large token issuance valued at $20 billion. This suggests a significant inflow of capital and liquidity into the market, as investors are willing to invest capital in cryptocurrencies, according to Vini Barbosa at Coinspeaker. <\/p>\n\n
On 2 December, Tether minted another 1 billion USDT and transferred it to an unknown wallet on the Tron network, according to data compiled by Whale Alert.<\/p>\n\n
Lookonchain also reported on the minting, highlighting the $20 billion in cumulative minting by Tether and Circle since the unprecedented $19 billion liquidation on 10 and 11 October, which caused the market to plummet, in what BitMine’s president described as a quantitative tightening effect for cryptocurrencies, reducing liquidity.<\/p>\n\n
However, the $20 billion in USDT and USDC minted to date paint a different picture of the cryptocurrency market in terms of liquidity. This is because stablecoins, especially dollar-pegged ones issued by Tether and Circle, are the most widely used entry and exit routes, serving as important indicators of liquidity and capital flow. <\/p>\n\n
As a general rule, a declining market capitalisation for stablecoins indicates that capital is leaving cryptocurrencies, and investors are withdrawing their funds in traditional US dollars for non-cryptocurrency applications. On the other hand, an increase in the market capitalisation of this asset class indicates that investors are depositing USD to obtain USDT and USDC so that they can allocate capital in cryptocurrencies. <\/p>\n\n
In theory, Tether and Circle can only mint USDT and USDC backed by actual dollars on deposit. Therefore, the fact that these companies minted $20 billion following the $19 billion liquidations on 10\u201311 October suggests that liquidity not only remained in the crypto ecosystem, but that additional liquidity has also entered at these prices. <\/p>\n\n
A similar dynamic was observed on 4 September, when Tether minted USDT worth \u00a32 billion during a market downturn. This was the largest minting in nine months, preceded only by a minting of $2 billion in December 2024. All of these mintings also preceded a price rally. <\/p>\n\n
For example, the minting of Tether on 6 December 2024 preceded an 8% rally over 10 days in Bitcoin, reaching approximately \u00a399,000 to \u00a3107,000 on 16 December 2024. Subsequently, on 4 September 2025, the reported minting of 2 billion USDT preceded a 12% rally over 30 days to BTC’s current all-time high, from \u00a3110,500 to \u00a3124,500. <\/p>\n\n
If history repeats itself, Bitcoin could experience a similar rebound from its current levels, between \u00a385,000 and \u00a390,000, which could mark a local low. Other market movements suggest that cryptocurrency whales are favouring long positions over short ones, accumulating positions for what could be the next rally. <\/p>\n\n
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